Document Type
Other
Publisher
Edith Cowan University
Place of Publication
Perth, Western Australia
School
School of Accounting, Finance and Economics
Abstract
This study investigates the alleged disintermediation of banks’ traditional deposit-taking in favour of investment management activities. Using data on Australian bank-affiliated funds and a nine-year record of the parent banks’ liability balances, this study finds that managed funds do not displace bank liabilities. Prudential capital adequacy requirements dissuade banks from using in-house managed investments as indirect conduits for raising funds in the same manner as deposit-taking.
Comments
Allen, D.E., & Parwada, J.T. (2003). Effects of bank funds management activities on the disintermediation of bank deposits. Perth, Australia: Edith Cowan University.